Analyzing CMS Energy (NYSE:CMS) and Centuri (NYSE:CTRI)

CMS Energy (NYSE:CMS) and Centuri (NYSE:CTRI) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Volatility and Risk

CMS Energy has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Centuri has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares CMS Energy and Centuri”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMS Energy	$8.54 billion	2.80	$1.07 billion	$3.53	22.02
Centuri	$2.98 billion	1.12	$22.40 million	$0.23	143.92

CMS Energy has higher revenue and earnings than Centuri. CMS Energy is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CMS Energy and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CMS Energy	12.54%	12.09%	2.87%
Centuri	0.76%	5.09%	1.50%

Institutional & Insider Ownership

93.6% of CMS Energy shares are held by institutional investors. 0.5% of CMS Energy shares are held by insiders. Comparatively, 0.2% of Centuri shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for CMS Energy and Centuri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMS Energy	0	6	7	0	2.54
Centuri	2	1	2	0	2.00

CMS Energy presently has a consensus price target of $80.00, indicating a potential upside of 2.90%. Centuri has a consensus price target of $28.85, indicating a potential downside of 12.85%. Given CMS Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe CMS Energy is more favorable than Centuri.

Summary

CMS Energy beats Centuri on 12 of the 14 factors compared between the two stocks.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.